EVAP: Canada's federal EV rebate, explained (2026 and 2027)

Last checked October 26, 2026

The Electric Vehicle Affordability Program (EVAP) takes up to C$5,000 off a new battery-electric or fuel cell vehicle, and up to C$2,500 off a plug-in hybrid, when the final price before tax is C$50,000 or less. EVs built in Canada have no price cap. It covers purchases and leases made on or after February 16, 2026. The dealer applies it on the bill of sale, so you never file anything yourself.

On January 1, 2027 the maximums drop to C$4,000 and C$2,000. Which amount you get depends on the year your dealer submits your eligibility assessment to Transport Canada, not the day you take delivery.

EVAP at a glance

• Who runs it: Transport Canada.
• Covers: new light-duty (under 8,500 lb) BEVs, FCEVs and PHEVs bought or leased in Canada from a licensed dealer by a Canadian resident, from February 16, 2026.
• Runs until: March 31, 2031, or earlier if the money runs out. Funding is first-come, first-served. Transport Canada reports C$2.275 billion in total, with C$1.92 billion left as of October 1, 2026.
• Price test: final transaction value of C$50,000 or less. No cap for Canadian-made EVs.
• Where built: Canada, or a country with a free trade agreement (FTA) with Canada.
• New only: used EVs don't qualify. Dealer demos under 10,000 km do.
• Limit: one incentive per person for the life of the program (businesses and organizations: up to 10).
• Stacks with: provincial and territorial rebates, which vary a lot by province. See our incentives page.

How much you get, by year

These are maximums. A shorter lease gets less (see below), and a non-Canadian car over the price cap gets nothing.

The C$50,000 cap: it's the final price, not MSRP

EVAP looks at the final transaction value: what you actually agree to pay for the car before tax. There is no MSRP cap. Transport Canada counts:

• the MSRP, less any manufacturer or dealer discounts (discounts count in full, whether applied before or after tax)
• optional packages and trim choices, such as a technology package, paint colour, window tint or ceramic coating
• accessories and add-ons sold with the car, such as floor mats, a hitch, roof rack, rims, dash cam, alarm or VIN etching
• dealer fees: admin, documentation, service, market adjustment and dealer-to-dealer transport fees

It leaves out:

• freight and pre-delivery inspection (PDI)
• extended warranties, tire protection, subscriptions and insurance products
• one set of winter tires
• a Level 2 charger and adapters
• financing and lease costs, cash deposits and trade-ins
• sales tax, luxury tax and other taxes, registration and licensing fees, and provincial rebates

So a car with an MSRP just under C$50,000 can fail once an admin fee or a paint upgrade goes on the deal, and a trim over C$50,000 can pass if the dealer discounts it enough.

Canadian-made EVs have no cap

If the EV is built in Canada, the C$50,000 limit doesn't apply. When we checked Transport Canada's vehicle list, the entries marked Canadian-made were the Dodge Charger and the Chrysler Pacifica plug-in hybrid. In our data the Charger Daytona Scat Pack starts at C$85,195 and can still get the full amount.

Country of manufacture: the China rule

Only EVs built in Canada or in an FTA country qualify. Canada's FTAs cover the US and Mexico (CUSMA), the EU, the UK, South Korea and the CPTPP partners such as Japan, among others. China has no FTA with Canada, so China-built EVs get no federal rebate at any price. That still holds now that Canada lets a limited quota of Chinese-built EVs in at a lower tariff.

The same model can come from different plants. The Tesla Model 3 is the clearest case: the Premium RWD and Long Range Premium AWD trims sold in Canada are built in Shanghai, so we mark them Not eligible. Tesla paused Canadian orders for both in October 2026. The US-built Model 3 Performance starts at C$74,990, well over the cap. The Model Y RWD, on the other hand, is on Transport Canada's list. Always ask the dealer where your exact vehicle was built.

Leases

Leases of 12 months or longer qualify. A lease of 48 months or more gets the full amount. Shorter terms get the full amount divided by 48, times the number of months.

The same formula applies to the 2027 amounts. For example, a 36-month BEV lease submitted in 2027 works out to C$3,000.

Leases through a third-party leasing company also qualify. Either the dealer processes the incentive, or the leasing company enrols with Transport Canada and passes the incentive to you.

How the dealer applies it

You can't apply on your own. Only enrolled dealers and authorized sellers, such as some leasing companies, can submit.

1. Before delivery, the dealer has you fill in a Consumer Consent Form and submits an eligibility assessment through Transport Canada's EVAP portal, with the VIN and the final transaction value.
2. Once pre-approved, the approval is valid for 90 days.
3. The dealer adds taxes and fees, then takes the incentive off the bill of sale or lease agreement. You sign an Attestation Form confirming the details.

Dealer participation is voluntary. The program itself is free, and Transport Canada says dealers can't add extra fees because you're getting the incentive. If an eligible deal missed the rebate, go back to that dealer first. If they agree to fix it, they can pay it to you by cheque or another method once eligibility is confirmed.

Used EVs

Used EVs are not eligible. A vehicle counts as new only if it has never been registered or plated. The one exception is a dealer demonstrator with less than 10,000 km on the odometer. Some provinces do have used-EV rebates; check our incentives page.

The January 1, 2027 step-down

From January 1, 2027, the maximum drops by C$1,000 for BEVs and FCEVs (C$5,000 to C$4,000) and by C$500 for PHEVs (C$2,500 to C$2,000).

What decides your amount is the year the dealer submits your eligibility assessment. Your order date, contract date and delivery date don't decide it. Transport Canada gives two examples:

• Submitted December 2, 2026, car delivered February 21, 2027: the 2026 amount applies.
• Car delivered November 26, 2026, but submitted January 7, 2027: the 2027 amount applies.

If you're buying near year end:

• Ask the dealer to submit your eligibility assessment as soon as the deal is signed, and get confirmation that it went in before January 1.
• Leave margin. Dealers are busy in late December and closed on statutory holidays.
• Mind the 90-day approval window. In Transport Canada's December example, the car arrived within 90 days. It doesn't say what happens if a 2026 approval runs out before delivery, so if your car is months away, ask the dealer how they'll handle it.
• Don't rush into the wrong car for C$1,000. A year-end discount, a lower 2027 price or a better-fitting trim can easily be worth more.

How EVAP differs from iZEV

EVAP replaced the iZEV program, which ran from May 2019 until it was paused on January 12, 2025 when its funds were fully committed. Purchases made between that pause and February 16, 2026 got no federal rebate.

The practical difference: under iZEV, a listed trim qualified almost automatically. Under EVAP, your actual deal decides, so add-ons, fees and where the car was built all matter.

Which EVs qualify: our three statuses

We match every trim in our catalogue against our copy of Transport Canada's EVAP vehicle list and the program rules. We last copied all six pages of the list on October 26, 2026 (131 vehicles; the list page itself is still dated March 10, 2026). Transport Canada adds vehicles from time to time, so if a car isn't in our Listed table, check Transport Canada's vehicle list directly. Trims sold only used are always Not eligible.

• Listed: we found this trim on Transport Canada's EVAP list. It still has to pass the C$50,000 test on your deal unless it's Canadian-made. A few listed trims have an MSRP above C$50,000 in our data, so they only qualify with a discount.
• May qualify: not on our copy of the list, but the MSRP is C$50,000 or less. Transport Canada says unlisted vehicles can qualify if they meet the rules. Confirm the build country and the final price with the dealer.
• Not eligible: the MSRP is above the cap (and it isn't Canadian-made), we have a source showing it's built outside an FTA country, or it's only sold used. An above-cap car could still qualify if a dealer discount brings the final price to C$50,000 or less, but that's rare.

Being on the list is not a guarantee. Transport Canada says a listing doesn't mean every sale of that car qualifies. Your deal does.

Listed trims

May qualify

Popular EVs that don't qualify, and why

For a fuller shopping list, see EVs eligible for the federal rebate and EVs under $50,000, or filter by rebate status in the comparison tool.

Practical buying checklist

• Ask for the EVAP rebate to appear as its own line on the bill of sale or lease agreement.
• Get the final transaction value in writing before you add accessories. Ask what each add-on does to it.
• Ask where the exact car was built.
• Remember it's one rebate per person for the whole program, so use it on the car you plan to keep.
• If you want the 2026 amount, confirm the dealer has submitted your eligibility assessment before January 1, 2027.

FAQ

How much is the federal EV rebate in Canada in 2026?

Up to C$5,000 for a new battery-electric or fuel cell vehicle and up to C$2,500 for a plug-in hybrid, if the final price before tax is C$50,000 or less. Canadian-made EVs have no price cap. Leases under 48 months get a prorated amount.

What is the EV rebate in Canada for 2027?

From January 1, 2027, EVAP pays up to C$4,000 for BEVs and FCEVs and up to C$2,000 for PHEVs. It falls again to C$3,000 and C$1,500 in 2028. The year the dealer submits your eligibility assessment decides which amount you get, so a request submitted in December 2026 keeps the 2026 amount even if the car arrives in early 2027.

Does EVAP apply to leases?

Yes, for leases of 12 months or longer. A 48-month lease gets the full amount, and shorter leases are prorated: a 36-month BEV lease in 2026 gets C$3,750, and a 24-month lease gets C$2,500.

Can I get EVAP on a used EV?

No. Only new vehicles that have never been registered qualify, plus dealer demonstrators with under 10,000 km. Check your province's programs for used-EV rebates.

Is a car on the Transport Canada list guaranteed to qualify?

No. Transport Canada describes its list as models with an MSRP of C$50,000 or less, but your actual deal must have a final transaction value of C$50,000 or less, unless the car is Canadian-made. Cars not on the list can also qualify if they meet the rules.

Why doesn't the Tesla Model 3 qualify for EVAP?

The Model 3 Premium trims sold in Canada are built in Shanghai, and China has no free trade agreement with Canada, so they can't qualify at any price. The US-built Model 3 Performance starts at C$74,990, far above the C$50,000 cap. The Model Y RWD is on Transport Canada's list.